Honda Motor Co., Ltd. (HMC,7267.T), a major Japanese automaker, said on Thursday that its Honda Motorcycle & Scooter India Private Limited, or HMSI, will add a third production line to its second plant in Rajasthan, India, to meet the growing demand in the country.
HMSI will invest around INR 15 billion to acquire 74,000 m² of land adjacent to its second plant to build a third production line.
The new line will be designed to be flexible to produce a total of 670,000 units of 125cc and 160cc scooters and light motorcycles combined. The addition of this new line will increase the total production capacity of the second plant to 2.01 million units.
The new line will begin its operations in 2028, with an annual output capacity of 670,000 units, which will bring the total annual production capacity of the second plant to 2.01 million units.
The second plant currently has an annual production capacity of 1.3 million units.
Overall HMSI's annual production capacity is anticipated to increase from the current 6.25 million units to 8 million units by 2028.
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